Egyptian state-owned Middle East Oil Refinery (Midor) is planning to start executing the second phase of Alexandria Refinery Expansion project in 2018, according to a statement released on 1 January by the country’s Minister of Petroleum Tarek el-Molla.

The main contract for the project was awarded to France’s Technip in July 2015, but has stalled for years due to financing problems.

The expansion aims to increase the Alexandria Refinery’s capacity from 100,000 to 160,000 barrels a day (b/d).

Earlier this year Saudi Aramco signed a deal with Midor. Under the terms of the agreement Saudi Arabia will ship crude to Egypt where it will be refined.

State-owned Egyptian General Petroleum Corporation (EGPC) will purchase the diesel, mazut, 90-octane gasoline, and 92-octace gasoline produced under the terms of the agreement.

Saudi Aramco has retained the right to sell the jet fuel refined by Midor in Egypt or abroad.

Egypt’s $3.5bn Mostorod New Refinery is also due to come online in 2018 according to the statement released by El-Molla.